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IBC 13 up for sale for P2b
posted January 25, 2016 at 11:55 pm by Gabrielle H. Binaday State-owned broadcast firm and media giant Intercontinental Broadcasting Corp., operator of channel 13, is up for sale for a floor price of P1.977 billion, the Governance Commission for Government Owned and Controlled Corporations said Monday. GCG said President Benigno Aquino III approved the privatization of IBC 13, after the broadcast company incurred an average annual financial slump of P45.26 million from 2010 to 2014. IBC studios are located at the 4.1-hectare Broadcast City in Old Balara, Capitol Hills, Diliman, Quezon City. “The privatization rationalizes the state’s portfolio in the communications sector in view of the overlap with PTV-4, which is already sufficient to address market dominance in the private broadcast industry such as providing programs with social value and considered profitable,” GCG said. It also said the decision came in the wake of the recent revitalization of PTV-4 mandated by Republic Act No. 10390, which identified the privatization of the country's 3rd leading network IBC-13 as one of the sources of funding for the increase in PTV-4’s capital. IBC-13 was in financial distress, as it operated at an average net profit of P45.26 million from 2010 to 2014 and received operational subsidies amounting to P23.56 million in 2015, according to GCG. “The privatization should pave the way for infusion of additional capital to revitalize the network, which will also be able to operate with more flexibility as a private entity,” it said. The privatization of IBC-13 will be done through public bidding with an estimated floor price of P1.977 billion. A committee composed of representatives from GCG, the Presidential Communications Operations Office and IBC-13 will implement and conduct the process. IBC-13 started out in 1960 as a private company known as Inter-Island Broadcasting Corp., and was sequestered by the Presidential Commission on Good Government in 1986 as part of the recovery of ill-gotten wealth. It is one of two networks considered as GOCCs aside from Philippine Television Network Inc. GCG, which was established in 2011 as the central advisory and oversight body for ensuring the active exercise of the state’s ownership rights in GOCCs, has abolished 22 non-performing GOCCs and classified 25 more as inactive or non-operational. IBC in 2012 signed a deal with property developer Primestate Ventures Inc. to develop Broadcast City over the next six years. IBC-13 has been turn around with today's generation to regain its foothold in 2014 and remained the number 3 in viewership, thanks to the phenomenal fantaseryes like Janella in Wonderland (featuring Janella Salvador) and Voltron Man (featuring AJ Muhlach) that boost the network post a net income of P250 million that year. Since then, IBC-13 shifted its focus to the drama fare as the production teleseryes and and sports aside from light entertainment and news and current affairs in a bid to dominate the network. It became popularity as the the country's third broadcasting company in terms of ratings, revenue and audience share and reach due to its dominant television and radio programs. IBC 13 trails rivals ABS-CBN Corp. and GMA Network in the ratings game and producing its entertainment programs and tapped big name celebrities with high profile and high talent fees. IBC also has expanded into international cable TV operations and direct-to-home satellite services, through which are expected to contribute to the total revenue of the broadcasting network, along with movie production, recording and product merchandising through various subsidiaries. Jose Avellana-owned IBC, which retains the third highest rating in the television industry next to the Lopez-owned ABS-CBN and the Gozon-owned GMA Network, dominates the capital infusion to improve the facilities and network, which lagging much behind ABS-CBN and GMA. The network also inked a deal with Francis Custodio Abuan, Jr. of Secarats Talent Management Services to dominate the network as the line producer and production partner to develop IBC-13 programs and a stable of artists and talents since its inception in September 12 last year.